Doug Ashbury
Northern News Services

NNSL (Jun 24/98) - Federal transfer payments to the territories after division will maintain existing programs and services for the two new territories, officials said yesterday.

To cover the extra costs of running two governments instead of one, Ottawa will hike federal transfer payments to the North by $95 million.

The financing announcement, made by federal Finance Minister Paul Martin and Nunavut Interim Commissioner Jack Anawak Tuesday, means NWT and Nunavut governments can begin serious examination of budgets for the 1999-2000 fiscal year.

This is "basically what we asked for," GNWT Finance Minister John Todd said.

Nunavut's deputy finance minister, Bob Vardy, was also satisfied with the amount. "We enter negotiations trying to get the best deal. We got what we could out of this process," he said.

"We have taken a major step forward in the building of Nunavut. We now have a base to begin planning our first budget," Anawak said.

Western Coalition chair Floyd Roland said the announcement assures funding to continue current service levels.

The territorial formula financing agreements, expected to be finalized later this year, take effect April 1, 1999.

The increased funding reflects estimated 1996-97 expenditures of $690 million for the western NWT and $587 million for Nunavut.

Funding in 1999-2000 will reflect 1996-97 levels escalated according to the financing agreements.

Yesterday's announcement comes after a year of negotiations that included the GNWT, the office of the interim commissioner, the Western Coalition, Nunavut Tunngavik Incorporated and the federal Finance and Indian and Northern Affairs departments.